Ohishi Sangyo Co., Ltd. (3943) AI Stock Analysis

• Market Cap: ¥12.62B
• Dividend Yield: 4.54%
• Average Volume (3M): 4.15K
• Price to Earnings (P/E): 19.1
• Beta (1Y): 0.49
• Revenue Growth: 4.38%
• EPS Growth: -12.68%
• Country: JP
• Employees: 579
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Packaging & Containers
• EPS (TTM): 24.20
• Shares Outstanding: 9,328,000
• 10 Day Avg. Volume: 5,120
• 30 Day Avg. Volume: 4,146
• PEG Ratio: -0.99
• Price to Book (P/B): 0.58
• Price to Sales (P/S): 0.46
• P/FCF Ratio: 25.20
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 78 Outperform
• Price Target: ¥1,696.00 ▲(30.16% Upside)
• Action: Reiterated Date: 10/28/25
• Date: Action: Reiterated 10/28/25

Ohishi Sangyo Co., Ltd. demonstrates strong financial performance with robust revenue growth and a solid balance sheet. The stock's technical indicators show positive momentum, and its valuation is attractive with a reasonable P/E ratio and a high dividend yield. The absence of earnings call data and corporate events does not impact the score significantly.

Positive Factors

Low leverage / strong equity base

A very low debt-to-equity ratio (0.03) and ~70% equity ratio provide durable financial resilience. This capital structure lowers default risk, preserves borrowing capacity for capex or M&A, and supports steady operations and dividend policy through cyclical stress.

Consistent revenue growth

Sustained top-line expansion (6.93% YoY) indicates underlying demand for packaging products and potential market share gains. Durable revenue growth supports scale advantages, spreads fixed costs, and creates capacity to reinvest in product development and operational improvements.

Solid cash-generation metrics

Operating cash flow comfortably exceeds net income (2.29x), signaling earnings quality and strong cash conversion. A positive free cash flow ratio (0.46) supports reinvestment and shareholder returns, giving management flexibility to fund growth or buffer shocks.

Negative Factors

Declining free cash flow

A near 11% drop in free cash flow is a structural concern if persistent: it can limit capacity for capex, dividends, or debt reduction. Continued declines may reflect rising working capital needs or higher investment, reducing financial flexibility over the medium term.

Margin pressure

A falling net margin and erosion in EBIT/EBITDA margins point to mounting cost or pricing pressure. If structural, margin compression will weaken free cash flow and return on capital, making it harder to fund growth and sustain shareholder returns without operational fixes.

Significant EPS contraction

A roughly 45% decline in EPS signals material earnings volatility or one-off hits that reduce retained earnings and investor optionality. Persistent EPS weakness impairs reinvestment capacity, dividend sustainability and may reflect execution risks needing strategic remediation.

Ohishi Sangyo Co., Ltd. Business Overview & Revenue Model

Company Description

Ohishi Sangyo Co., Ltd. (3943) is a Japan-based company primarily engaged in the manufacturing and distribution of various industrial chemicals and materials. The company operates in sectors such as chemical production, materials science, and environmental solutions. Ohishi Sangyo's core products include specialty chemicals, functional materials, and eco-friendly solutions designed for a range of industries, including pharmaceuticals, electronics, and manufacturing.

How the Company Makes Money

Ohishi Sangyo generates revenue through multiple streams, primarily by producing and selling specialty chemicals and materials that cater to diverse industrial applications. The company focuses on high-margin products that meet specific customer needs, which allows for premium pricing. Significant partnerships with major players in various industries enhance its market position and contribute to stable revenue. Additionally, Ohishi Sangyo invests in research and development to innovate and improve its product offerings, ensuring they remain competitive and aligned with market demand, thus driving sales growth.

Ohishi Sangyo Co., Ltd. Financial Statement Overview

Summary

Ohishi Sangyo Co., Ltd. exhibits a generally positive financial performance with strong revenue growth and stable profit margins. The balance sheet is solid, characterized by low leverage and substantial equity. Cash flow generation is decent, although recent declines in free cash flow warrant attention. The company is well-positioned in its industry, but should focus on enhancing profitability and cash flow efficiency.

Income Statement

Ohishi Sangyo Co., Ltd. demonstrates strong revenue growth, with a 6.93% increase in 2025 compared to 2024. The gross profit margin remains healthy at 18.42%, although the net profit margin slightly declined to 4.02%. The EBIT and EBITDA margins are relatively stable, indicating operational efficiency. However, a dip in EBIT and EBITDA margins over the years suggests potential cost pressures.

Balance Sheet

The company maintains a robust balance sheet with a low debt-to-equity ratio of 0.03, showcasing financial stability and low leverage. The return on equity is decent at 5.06%, and the equity ratio is strong at 69.91%, reflecting a solid equity base. Overall, the balance sheet shows strength with minimal financial risk.

Cash Flow

Cash flow analysis reveals a decrease in free cash flow, with a decline of 10.88% from the previous year. The operating cash flow to net income ratio is healthy at 2.29, indicating good cash generation relative to net income. The free cash flow to net income ratio is 0.46, which is moderately strong but suggests room for improvement in free cash flow generation.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	23.71B	23.48B	21.96B	21.79B	19.75B	18.60B
Gross Profit	4.45B	4.33B	4.20B	4.20B	4.31B	4.14B
EBITDA	2.26B	2.34B	1.97B	2.00B	2.25B	2.12B
Net Income	835.00M	944.00M	1.06B	902.00M	1.06B	946.46M
Balance Sheet
Total Assets	26.65B	26.69B	26.07B	25.54B	24.20B	22.49B
Cash, Cash Equivalents and Short-Term Investments	6.88B	7.44B	7.41B	7.54B	7.74B	7.05B
Total Debt	940.00M	641.00M	702.00M	1.08B	1.05B	1.09B
Total Liabilities	8.02B	7.97B	8.33B	9.00B	8.48B	7.76B
Stockholders Equity	18.57B	18.66B	17.68B	16.50B	15.68B	14.70B
Cash Flow
Free Cash Flow	0.00	433.00M	486.00M	100.00M	987.00M	1.24B
Operating Cash Flow	0.00	2.16B	1.86B	1.24B	1.75B	1.68B
Investing Cash Flow	0.00	-1.77B	-1.35B	-1.12B	-642.00M	-416.22M
Financing Cash Flow	0.00	-388.00M	-642.00M	-333.00M	-337.00M	-336.83M

Ohishi Sangyo Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1303.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3943, the sentiment is Positive. The current price of 1303 is below the 20-day moving average (MA) of 1445.05, below the 50-day MA of 1419.92, and above the 200-day MA of 1292.07, indicating a bullish trend. The MACD of 20.82 indicates Negative momentum. The RSI at 69.06 is Neutral, neither overbought nor oversold. The STOCH value of 80.07 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3943.

Ohishi Sangyo Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5901	79 Outperform	¥547.04B	13.65	6.55%	2.71%	-0.06%	137.47%
3943	78 Outperform	¥12.62B	19.09	―	4.54%	4.38%	-12.68%
7917	77 Outperform	¥116.71B	14.56	7.53%	3.01%	5.44%	45.99%
3950	76 Outperform	¥76.90B	12.49	―	6.64%	2.85%	-9.13%
7864	70 Outperform	¥159.38B	7.06	10.46%	2.35%	4.56%	49.23%
4248	66 Neutral	¥11.34B	13.97	―	4.20%	-5.73%	20.76%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%